Anfield stalwart Carragher announced in February that he would be retiring at the end of the season after 23 years of service to the Reds.
Gerrard's current Liverpool contract runs until 2015, but Carragher is sure that the 32-year-old will stay with the club beyond his existing deal.
"I'm sure Stevie will sign a contract and finish his career at Liverpool the way I've done," said Carragher.
"There is no doubt about that. I'm sure he'll sit down and sort it out in the next couple of months. Steve will be finishing his career at Liverpool. He is 'captain fantastic' every week."
Gerrard has made 625 appearances in all competitions for Liverpool since debuting in 1998.